Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5. Know the calculations for all of the following ratios (see ratio sheet that can be used on the exam) and know the category (listed
5. Know the calculations for all of the following ratios (see ratio sheet that can be used on the exam) and know the category (listed in Question 4) they fall in: Ratio Formula Category/Use Accounts Receivable Net credit sales/Average Turnover accounts receivable Return on Equity (ROE) Net income/Average total stockholders' equity Debt to equity Total liabilities/Total stockholders equity Return on Sales (ROS) (also Net income/Net sales known as Net Margin Quick Ratio Quick assets/Current liabilities Dividend Yield Inventory Turnover Earnings per Share (EPS) Dividends per share/Market price per share Cost of goods sold/Average inventory Net earnings available for common stock/Number of outstanding common shares Net income/Average total assets Current Assets - Current Liabilities Return on Investment (ROI) Working Capital Asset Turnover Price Earnings Ratio (P/E) Net sales/Average total assets Market price per share/Earnings per share Total liabilities/Total assets Current Assets/Current Liabilities Debt to assets Current Ratio 99+ 4. What are the main types of financial ratios? Next to each, list what types of users are interested in these ratios. Working Capital The excess of current assets over current liabilities is known as working capital b. Current ratio The current ratio measures a company's short term debt paving ability Quick ratio This ratio measures a company's ability to meet oblications without having to liquidate inventory d. Accounts Receivable Ratios Inventory Ratios
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started